Economics
India Cuts Tax on Housing to Boost Real Estate Before Elections
A pedestrian walks past residential buildings under construction in Uttar Pradesh, India.
Photographer: Anindito Mukherjee/BloombergThis article is for subscribers only.
India lowered tax on unfinished residential buildings and affordable houses to boost the real estate sector, as well as to ease the financial burden on home buyers.
A panel of federal and state finance ministers on Sunday decided to lower rates on under-construction housing to 5 percent and affordable units to 1 percent, without input tax credit. The new rates will take effect on April 1.